RateSetter investors earn £100 million in interest

By John Battersby20 Mar 2019

We are delighted that RateSetter investors have now enjoyed more than £100 million in returns!

We have passed the milestone of generating £100 million in interest without any individual investor losing a penny of capital or interest. This unique achievement is thanks to our Provision Fund, which spreads each investor’s risk across the whole loan book and provides a buffer against poorly performing loans.

RateSetter borrowers pay into the Provision Fund and, if a borrower misses a payment, the Fund steps in to reimburse the investors. The track record over the last eight years is impressive, but we always like to be clear that it is not a guarantee for the future and capital is at risk.

RateSetter’s purpose is to give people the opportunity to earn more on their money by allowing them to lend directly. To date, more than 60,000 registered RateSetter investors have lent almost £2.5 billion to 450,000 creditworthy individuals and businesses across the UK.

Our ISA, which allows tax-free investing, was introduced in February 2018, and in the space of just three months, it has received more than £80 million in subscriptions from 10,000 investors.

Rhydian Lewis, RateSetter’s CEO and founder, commented:

“We launched RateSetter to give people the opportunity to get their money working harder, and we are very proud that we’ve generated £100 million of interest for our investors without dropping a penny.

This is just the start. We are opening lending as an asset class that everyone can access easily, filling the gap between the low returns of cash deposits and the volatility of shares.”